Currently there are 3 extremely bullish momentum for stocks
1: The long bond market is crashing. 20Y Bond has gone from 4.02% to 4.15% now in less than a day. This is essentially a close to 3% drop in bond price within a day. Investors will take profit (as long bond has gone up 15% over last 6-9 months) and run away from long bond in the short term. --- I explained why long bond is crashing, at least for the time being, in a post yesterday
2: In the past, these money can go and park inside money market. Well, with Fed cutting rate by 50bps, the money market will soon say goodbye to those 5% rate. Not the best idea in the world to park money there unless you are an extremely conservative investor
3:Stocks have been sold off in recent weeks. Investors finally wake up and see a Fed who will do everything possible to ensure economy does not slip into hard ladning. Many people here are debating whether there will be another 25bps or 50bps cut in Nov. That is NOT important. What is important is that wall street now has assurance from Fed.
Once all 3 of these points sink in, you will see this market rocketing higher.
